Consumer Price Index

Headline retail inflation likely bottomed out in January and is seen rising to 2.57% in February. The rise would be the first in five months. More importantly, Consumer Price Index (CPI) inflation will remain below the Reserve Bank of India’s (RBI) medium-term target of 4.0% for the seventh consecutive month.

People are generally happy when prices are low; they feel even better off when prices are falling. But that could be a nightmare for the economic policy makers? Rising prices can be fought back; but it is impossible to tackle falling prices.

The inflation reported for the month of October was 3.1 per cent, the lowest in the last one year. This was a big relief, because just one month ago, there were fears that international oil prices may spike up to a100 dollars a barrel.

About Free Press Journal

The Free Press Journal is one of the oldest English Daily newspapers from Mumbai with a heritage of more than 88 years. And yet, The Free Press Journal is a contemporary paper and rooted in current urban realities.